type 01 FFL vs 02 FFL with SOT

[abody71]

Not sure if this the right forum but... I have seen ads that state you need a type 02 FFL with SOT to purchase the item. What is the difference between having a type 01 FFL with SOT and type02 FFL with SOT. If you have a type 02 FFL, do you have to actual be in the Pawnbroker business.

[taylorwso]

8 hours ago, Abody711 said:

Not sure if this the right forum but... I have seen ads that state you need a type 02 FFL with SOT to purchase the item. What is the difference between having a type 01 FFL with SOT and type02 FFL with SOT. If you have a type 02 FFL, do you have to actual be in the Pawnbroker business.

your confusing FFLs types with SOTs

FFL types are (not all of them)

dealer 01

pawnbroker 02

manufactures 07

 

If you are a FFL you have to buy a SOT (tax payment) which allows you do deal with NFA stuff. Each FFL gets a different class of SOT

a 07 FFL gets a "class 2" SOT  usually written as 07/02

 a 01 dealer gets a "class 3" SOT, hence the confusion when people ask if you have your "class 3" written 01/03

 

 

[SGT Fish]

And to answer the other part of the question. You need an SOT02 to machineguns from dealers, that are going out of business, without an agency demonstration request (law letter, demo letter, love letter, etc).

An SOT03 would be able to buy it, but they would need a letter to justify the purchase to the ATF. 

Edited December 14, 2022 by SGT Fish

[Ryo]

Letters that are mention are letterhead letters from Chief Law Enforcement Officer (CLEO) or Military requesting demonstration of specific MGs.

FFL 01 are Dealers. They need to get a SOT 03. They can buy transferrables, premay ( also called pre86) MGs without a letter. Post MG they have to get a letter from the CLEO or military of the specific machinegun. This includes needing a a letter even though the post MG has no requirement of a letter. They can not manufacturer their own MGs since they are a dealer. They can deal with other NFA items like silencer, SBR, SBS, AOW, etc.

FFL07 are Manufacturers. They pretty much have all the rights of a FFL01 but more. They need to get a SOT 02. They can buy transferable, premays, and post no law letter MG (MG that came from FFLs that gave up their SOT or shutdown). They do need letters to buy a post MG from a manufacturer or MGs from other FFLs that have demo letter MG. They can manufacture their own MG and sell them to LEO / MIL / FFLs with letters.

Note SOT means Special Occupational Tax. 

[abody71]

Thanks for all information. Cleared things up.